Jan 01 2004
Building Savings-Per-Member at Credit Unions
This study evaluates how credit unions can increase savings per member by attracting more funds from households with more than $25,000 in liquid assets—deposits in credit unions, banks/S & L’s, and money market mutual funds combined.
We divide these households into two groups: 1) “High Savers” with $25,000 – $50,000 in liquid assets; and 2) “Top Savers” with over $50,000 in liquid assets. We analyze the financial and demographic characteristics of these groups and find that many of these households fall into the broad range of middle income households, which have accumulated savings over a long period of time. We use the analysis of group characteristics to develop marketing implications for credit unions that wish to build savings per member by attracting additional funds from these groups.